Daibochi is committed to building a sustainable business and conducting our operations with integrity. As a leading flexible packaging converter for globally-renowned clients in the food and beverage and fast moving consumer goods sectors, we are mindful that good sustainability practices are integral to our long term business growth. To this end, the Board strives to embed a strong governance culture, socially responsible values and sound environmental practices throughout the Group.
The Board is pleased to present the inaugural Sustainability Statement of Daibochi Plastic And Packaging Industry Bhd (Daibochi/the Company) in line with Bursa Malaysia’s Listing Requirements. This statement encompasses the strategic management of the Company’s Economic, Environment and Social matters for the financial year. The data/information reported is in relation to our Malaysian operations as the Group’s subsidiary; Daibochi Packaging (Myanmar) Company Limited (Daibochi Myanmar) only
commenced operations in July 2017.
from the perspective of the Company as well as our key stakeholders:
- People/Employees – Social, Economic
- Environmental Conservation – Environment
- Sustainable Business Growth – Economic
- Communities – Social and Economic
We believe in the inherent strength of a diversified workforce as reflected in our Workplace Diversity Policy. Women employees do not face prejudice, are given equal opportunities to perform and excel at work and are well represented across all levels of the organisation. Employees who are pregnant may be offered suitable alternative work or adjustments to their working hours depending on the respective circumstances, thus creating a workspace that is welcoming to women employees. There is currently one female Independent Non-Executive Director on the Board and 2 women in our 7-member senior Management team (excluding the Executive Directors). Any promotion or increase in pay is based on merit i.e. the blend of competencies, qualifications and job-related skills, with due regard to diversity in terms of gender, age and cultural background.
Daibochi adheres to a No Child Labour policy. In accordance with our recruitment guidelines, we only engage and enter into employment contracts with persons who have completed 18 years of age. We expect our
suppliers, contractors, agents and business partners to uphold the same standards and/or comply with the specific provisions relating to the employment of children and young persons.
The Company offers fair and competitive remuneration packages based on our employees’ performance, roles and responsibilities. This is to ensure that we remain competitive in attracting, motivating and retaining talent which is important to our sustained growth. Employees and their immediate family members are also provided with access to quality healthcare as well as medical and healthcare insurance.
The Company helped to ease the burden of deserving employees with school going children by providing them with financial aid for the 2017 school session. Educational awards were also given to employees’ children to reward them for their outstanding academic performance. Social and recreational activities i.e. team building, annual dinner and festive celebrations were organised during the year to facilitate networking and camaraderie amongst employees.
In line with our commitment to sustain a productive working environment, we have implemented the workplace organisation method of 5S comprising “Seiri” (Sort), “Seiton” (Set in Order), “Seiso” (Shine), “Seiketsu” (Standardise) and “Shitsuke” (Sustain). Audits were also undertaken to ensure that employees adhere to these principles.
During the reporting period, various training sessions were conducted to motivate and enhance the morale of our production team. Personal development/leadership programmes were also provided to enhance production supervisors’ leadership potential. Employees also attended external trainings to stay abreast of evolving matters relevant to their job scope. These programmes promote the development of our workforce and equip them with the relevant skills for career growth.
- Compliance with laws, rules and regulations;
- Ensure a healthy and safe working environment for all employees and contract staff;
- Develop and enforce the use of safe working practices and provide training to employees in this regard;
- Hold each manager accountable for their achievement of these objectives; and
- Take every measure to prevent job related injuries and illnesses.
The Safety and Health Committee (SH Committee) is entrusted with cultivating safe workplace practices, including developing and administering safety policies, conducting annual safety audits of our manufacturing sites and ensuring compliance with Occupational Safety and Health Administration laws and regulations. The SH Committee regularly reviews safety performance results, occupational illness and injury incidents, workplace hazards, incident mitigation and prevention measures and conducts regular inspections to check that SH standards are met. Personal protective equipment is provided to all concerned workers to reduce potential occupational hazard exposure, whilst preventive actions such as fire drills are carried out annually to prepare our employees for speedy evacuation in the event of fire emergencies. Contractors are also expected to comply with our health, safety and environment standards in Daibochi’s Safety, Health and Environment Policy.
During the reporting period, the SH Committee continued to adhere to all standard operating procedures in relation to major accident cases. Meetings were held on an immediate basis, whilst complete investigations of the accidents, including corrective and preventive actions were undertaken. Particulars of the accidents were then reported to all employees at the Company’s monthly assemblies to create awareness and instil a safety culture amongst employees. Reviews were also carried out on a quarterly basis by the SH Committee and reported to Management. The SH Committee continued to provide regular training in relation to fire safety, chemical spills, machine safety and accident-prevention to ensure a high degree of preparedness to respond to workplace safety incidents in addition to greater safety compliance.
As a result of our SH initiatives and proactive engagements with employees and contractors, we maintained zero fatalities and occupational illness in our manufacturing plants. The data is as follows:
The SH Committee arranged for health screenings, talks to educate employees on best practices and habits to encourage a healthy and balanced lifestyle during the SH Week. A “No Smoking Day” campaign was organised to create awareness of the hazards of smoking. The focus of these campaigns was to enhance health awareness and encourage employees to make positive lifestyle changes.
Employees continue to participate in recycling activities through our “Green Day” campaign every Tuesday and Thursday. They are encouraged to bring segregated waste of plastic, paper, tin, discs, used batteries or clothing to be sent to the Tzu Chi recycling centre. The use of polystyrene food packaging is prohibited in the Company premises and employees are provided recyclable food containers. Employees are encouraged to practise the 5R’s – ‘Refuse, Reuse, Reduce, Repair and Recycle’ in their daily activities. We also lead by example to encourage prudent electricity usage by switching off the lights in the office during scheduled breaks. Employees participated in the “Earth Hour” on March 25, 2017 from 8.30pm to 9.30pm by switching off lights and electrical equipment during that hour.
Our internal teams ensure that our business operations comply with existing regulatory requirements through continuous monitoring and audits. During the year, the Group was not penalised for any instance of noncompliance with environmental laws and regulations. Our ISO 14001 environmental management certification signifies our commitment to minimise the impact on the environment and conserve natural resources. Moving forward, we will step up trainings and awareness amongst our employees and identify opportunities in relation to environmental best practices and prudent management of resources.
The Company ensures that there is a robust and effective quality management system in place to meet the requirements of regulators, customers and consumers. Our commitment to excellence and continuous improvement in quality is further reflected in the Quality & Food Safety Policy and accreditations attained by the Company. The ISO 9001 certification underscores our commitment to deliver high quality products and services to our customers. The FSSC 22000 accreditation (Food Safety System Certification) recognised by the Global Food Safety Initiative and supported by the Confederation of the Food and Drink Industries of the European Union emphasises our dedication to continuous improvement of quality and food safety. In 2017, we continued to adhere to good manufacturing practices, hygiene practices and food safety management systems in our supply chain, manufacturing and delivery of products to our customers. Regular reviews and audits were undertaken based on established standards and criteria to ensure quality control in our manufacturing facilities.
In line with this commitment, the Company also has a Whistleblowing Policy in place to provide an avenue for employees and stakeholders to report, in good faith, genuine concerns about unethical behaviour and improper conduct within the Company without fear of reprisal. There were no unethical behaviour/improper conduct/concerns reported to the Independent Non-Executive Directors during the year. The Company has a Competition Law Compliance Policy which provides guidance to employees in their dealings with competitors in relation to anti-competitive practices to ensure that we compete fairly and ethically in the marketplace.
We also monitor and evaluate risk on an ongoing basis as part of our sustainability commitment. There is a sound risk management and internal control framework/system in place to safeguard shareholders’ investments, the Group’s assets and the interest of other stakeholders. The Group’s Corporate Governance Overview Statement and Risk Management and Internal Control Statement in this Annual Report and the Corporate Governance Report at www.daibochi.com provide further details on good governance and risk management.
Details on the Group’s growth strategies are furnished in the Management Discussion and Analysis available in the Annual Report.
We understand our role in economic development and our manufacturing plants located in Ayer Keroh and Jasin, Melaka support the employment of local communities. Furthermore, each year, we recruit students from colleges, technical schools and universities for our internship programme. There were 30 trainees attached to the Company for their industrial training in 2017. These trainees were provided with comprehensive hands-on training to equip them with the knowledge and skills needed in future career pursuits. We also seek to employ some of these trainees if there are vacancies available in the Company.
Our HRD organised a blood donation campaign at our premises in 2017. This noble cause received good response from the workforce and encouraged the culture of voluntary blood donation.
REPORTS AND CIRCULARS
Kompleks Daibochi Plastic
Lot 3 & 7, Air Keroh Industrial Estate, Phase IV,
75450 Melaka, Malaysia.
T: +606 231 9779
F: +606 232 8988
Daibochi Berhad (12994-W). All Rights Reserved.